Airdrops, or free token giveaways, have grown commonplace in the bitcoin industry in recent years.
Simply said, an airdrop is a practice of providing free crypto tokens to early adopters of a decentralised programme, blockchain service, or other cryptocurrency users. Tokens that are airdropped are often utilised for protocol governance and utility within an application.
Many cryptos and DeFi projects have distributed governance tokens worth thousands of dollars to individual community members, underscoring the rich opportunity that comes with being a project’s early adopter.
Airdrops can also be used as a powerful marketing technique for protocols to attract new users. The prospect of free airdrops has increased activity on protocols that do not have their own tokens.
For many cryptocurrency fans, airdrops provide a method to obtain tokens worth thousands of dollars with a small initial investment. The phenomenon has created a lot of buzz and excitement among cryptocurrency users who want to be eligible for large contests.
Scouting for prospective airdrops is one approach to boost your chances of receiving free tokens. Users might start by looking for famous projects that do not yet have a token but may do so in the future. Often, projects provide signals that a token will be released in the future. During token generation events, projects commonly allot 5 to 10% of their token supply to early users.
Dedicated cryptocurrency airdrop websites, social media groups, and forums can also provide useful information on alleged airdrops. DeFi Airdrops, a Twitter account that specialised in anticipating airdrops, is maybe the most useful resource. DeFi Llama’s airdrop page also features tokenless protocols that may be used to coordinate airdrops.
New Crypto projects
In addition to searching for projects, actively using projects on blockchains such as Ethereum, Solana, Fantom, Avalanche, and Cosmos is a useful method for increasing your chances of earning an airdrop reward.
Users can experiment with tokenless applications in niches such as DeFi, NFTs, and GameFi. For instance, if a viable lending protocol arises on Ethereum, contributing tokens to its liquidity pools may result in a future airdrop.
While many of the largest airdrops to date have occurred on Ethereum, immersing oneself in different ecosystems and playing with the technology as much as possible should only raise the likelihood of a future payout.
High-Value airdrops at Ethereum
By far the greatest network for the most lucrative airdrops among all Layer 1 blockchains with active DeFi and NFT ecosystems has been Ethereum. When they airdropped their tokens on the network, Uniswap, 1inch, dYdX, Ethereum Name Service, Paraswap, and other projects all issued at least $1,000 worth of tokens for each user, and in some cases, the prizes were significantly larger (those who held onto their tokens were often rewarded with higher returns too). Until now, such lucrative airdrops have been more difficult to come by on alternative Layer 1 blockchains such as Solana, Avalanche, Fantom, and Polygon, where transaction fees are far lower than on Ethereum.
Another great way to participate in airdrops is to mine, buy, and hold NFTs. Many crypto enthusiasts believe that NFT collections will issue governance tokens in the future. For example, the Bored Ape Yacht Club has already stated its intention to issue a coin.
Holders of the appropriate NFT may also be eligible for new NFTs. Bored Ape Yacht Club airdropped Bored Ape Kennel Club NFTs and Mutant Serums to Bored Ape holders, while other collections such as Cool Cats and Damien Hirst’s The Currency also gave free new NFTs to keep their communities interested.
One of the greatest methods to qualify for airdrops, both in the form of governance tokens and new NFTs, is to become involved in the NFT ecosystem and find projects with significant communities.